The cover story titled 'StUMPPed!!!' highlights the plight of UMPPs of Tata Power and Adani Power in the light of rise in coal prices due to change in regulations by Indonesia and Australia. But can India afford to forsake such huge assets built assiduously, is the question it raises.

A Mechanical Engineer by qualification, Gurdeep Singh, CMD, NTPC, has over 28 years of experience in power generation sector. He started his career with NTPC and has worked at various levels in both Indian and multi-national companies such as Powergen, CLP, IDFC, CESC and AES.

One of the essential components of a thermal or nuclear power plant is the cooling tower. Even in the modern age of renewable energy, solar thermal power plant requires a cooling tower application, though not in the same size and shape as that of a thermal or nuclear power station.

At the time of bidding for the Gujarat UMPP and also in the Case-2 Bidding based on imported coal, the bidders had a choice to bid for an (indexed÷ fuel cost, which meant that any variations in fuel cost could be passed through to the procurers based on an indexation formula defined in the PPA.

Not just Indonesia, many countries, including Australia, have imposed regulations and taxes which impacted end-use companies that mined coal and commodities for purchase at cost of production. Higher taxes meant that input costs exceeded that on which the projects were constructed.

The state has annulled a 4 GW coal UMPP to be developed by the Gujarat State Electricity Corporation, citing existing surplus generation capacity (30 GW — old and renewable energy) and a desire to transition from fossil fuel–based energy sources to renewable power.

In the past five years, coal power made up over two-thirds of capacity additions in India's generation, and currently accounts for more than 60 per cent of India's power capacity. According to the International Energy Agency (IEA), India's coal demand will see the biggest growth over the next five years, despite a global slowdown.